Anne Guthrie v. Coal Bed Services Inc.

Court of Appeals for the Eleventh Circuit·Decided September 1, 2026·No. 24-10572·Published

Opinion

FOR PUBLICATION

In the

United States Court of Appeals For the Eleventh Circuit

No. 24-10572

DEMARKUS HALL, Plaintiff,

ANNE GUTHRIE, Administrator for the estate of DeMarkus Hall, EDDIE HUGHES, Plaintiffs-Appellants,

versus

COAL BED SERVICES INC., PATE HOLDINGS INC., Defendants-Appellees.

Appeal from the United States District Court for the Northern District of Alabama D.C. Docket No. 7:22-cv-00513-LSC

Before NEWSOM, BRASHER, and ED CARNES, Circuit Judges.

2 Opinion of the Court 24-10572

ED CARNES, Circuit Judge:

DeMarkus Hall and Eddie Hughes, who are Black, worked for Coal Bed Services, Inc. They complained to one of their work supervisors that another supervisor had discriminated against them based on race. Several weeks later, the supervisor they had complained to fired Hall and Hughes after they refused to take a drug test on a jobsite. Brandon Ramsey, a White coworker, also refused to take that drug test; he walked off the jobsite, realizing that he was being terminated.

Soon thereafter, the company let Ramsey come back to work but wouldn’t let Hall and Hughes. And even though all three employees had worked only four hours the day they refused to take the drug test, the company paid Ramsey for a full shift but paid Hall and Hughes for only four hours. The next two workers the company hired for Hall’s and Hughes’ positions were White men, one of whom it had previously fired for failing a drug test.

Hall and Hughes claim that the company’s firing them for their refusal to take a drug test was a pretext for unlawful discrimination and for retaliation. They asserted those claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e-2(a), id. § 2000e-3(a), against their former employer Coal Bed Services Inc.,

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24-10572 Opinion of the Court 3

and under 42 U.S.C. § 1981 against Coal Bed Services and its parent company Pate Holdings, Inc.1 The district court granted summary judgment in favor of the defendant companies. We believe there is a genuine issue of material fact as to whether the companies discriminated against Hall and Hughes based on their race and retaliated against them for protected conduct. We reverse the district court’s grant of summary judgment and remand for further proceedings.

I.

A. Factual Background

DeMarkus Hall 2 and Eddie Hughes worked as laborer-operators for Coal Bed Services, a subsidiary of Pate Holdings, from September 2020 until Coal Bed Services terminated their

1 Coal Bed Services has only one shareholder, which is Pate Holdings. And Pate Holdings has only one shareholder, Luther Stan Pate, IV (Stan Pate). Stan Pate testified as the Rule 30(b)(6) representative on behalf of both companies. See Fed. R. Civ. P. 30(b)(6). Coal Bed Services, which was Hall and Hughes’ employer, is a defendant as to the Title VII and § 1981 claims, while Pate Holdings is a defendant only as to the § 1981 claims. But in their brief to this Court, the two companies have not distinguished themselves from each other in regard to the § 1981 claims. And we will at times refer to them collectively as “the companies.” 2 After the events involved in this case occurred, Hall died. Anne Guthrie, the administratrix of his estate, has been substituted as a party. To simplify things, in referring to arguments, contentions, and positions we will still refer to Hall as though he were the party in this case.

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employment in February 2021. 3 As laborer-operators, Hall and Hughes worked alongside other laborers and equipment operators, and their job duties included various construction and property maintenance tasks. Most of their coworkers at Coal Bed Services were White, including their direct supervisor, Willie Williams.

Brandon Ramsey, a White coworker of Hall and Hughes, also worked on a crew primarily supervised by Willie Williams, and he worked at the same jobsites as Hall and Hughes on most days. Ramsey began working for Coal Bed Services in 2018. Before 2018 he had worked in similar construction positions.

In their depositions Hall and Hughes testified that Coal Bed Services treated them differently from their White coworkers. They testified that their supervisors gave them “dirtier” and more difficult jobs than their White coworkers. And, according to Hall and Hughes, the company did not give them the same opportunities for development and advancement that it gave their White coworkers.4

3 We view the facts at summary judgment in favor of the nonmovants, here Hall and Hughes. See Cottrell v. Caldwell, 85 F.3d 1480, 1486 (11th Cir. 1996). “[W]hat is considered to be the ‘facts’ at the summary judgment stage may not turn out to be the actual facts if the case goes to trial, but those are the facts at this stage of the proceeding for summary judgment purposes.” Id. 4 On at least one occasion someone at Coal Bed Services did give Hall an opportunity to learn how to operate heavy machinery. He took advantage of that opportunity but unfortunately crashed the heavy machine into a company truck.

24-10572 Opinion of the Court 5

Hall and Hughes also testified that other supervisors, including James Toxey, referred to them as “y’all” and “them,” instead of using their names, while the same supervisors referred to all the White employees by their names. The pair also took offense to Toxey’s tone when he once asked them to wash his truck during work hours, which was not part of their job duties.

Hall and Hughes further testified that in January 2021, they had what they describe as a verbal altercation with supervisor Toxey, which they think was racially motivated on his part. Hughes remembered Toxey belittling them before the altercation began: “[Toxey] was talking crazy. Basically like, the boy stuff, like talking to us like we [were] beneath him. Stuff like that.” Hall believes that racism motivated Toxey’s comments. He testified that when he confronted Toxey about his behavior, Toxey brushed it off with the comment: “I’ve got more black friends than y’all.”

Supervisor Williams intervened and ended that verbal confrontation . Hall and Hughes told him that Toxey was racist and was treating them differently than he treated other employees. Williams did not ask them for additional information about the incident or why they thought Toxey was racist. Nor did Williams discuss the incident or complaint with anyone other than Toxey himself, who denied that he was racist. Believing the disagreement was due to conflicting personalities, Williams took steps to separate the pair and Toxey from that point on.

Then came the incident that resulted in the end of Hall’s and Hughes’ employment. Williams testified that on February 19,

6 Opinion of the Court 24-10572

2021, an employee reported to him that he had seen Hall and Hughes smoking marijuana on the job. In response to that report, Williams rounded up Hall, Hughes, and the rest of their team and told them all that they had to take a drug test. (Before that testimony was given, Coal Bed Services took a different position in its Equal Employment position statement, representing that the drug test was random and not referring to any report that Hall and Hughes had been seen using drugs at work.

Williams told the employees that if they failed the drug test or refused to take it, they would be terminated. One White worker, Ramsey, refused to take the test and walked off the jobsite, effectively accepting his termination. Hall and Hughes also refused to take the test and understood they were effectively terminated; they, too, left the jobsite.

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